Prime Minister Donald Tusk’s recent calls for the nationalization and repolonization of Poland’s economy have sparked mixed reactions, with many observers questioning what specific actions the government intends to take. Among the most vocal critics is Professor Leszek Balcerowicz, who dismissed the concept as a “murky slogan” that lacks clarity and risks being interpreted as either a reduction of foreign capital influence or outright nationalization.
“I don’t know what ‘repolonization’ even means. It’s a vague slogan open to many interpretations,” said Balcerowicz, former finance minister and head of the Forum for Civic Development (FOR), in an interview with Newseria. “What the Polish economy truly needs is the withdrawal of politicians and the privatization of companies that are still under state control.”
Nationalization vs. Market Economy
Balcerowicz warned that if Tusk’s rhetoric implies nationalization, it would represent a regression toward socialism and potentially violate EU principles.
“If repolonization means nationalization, that’s a step backward into socialism, and it would breach fundamental rules of EU membership,” he said.
The controversy began when Tusk declared an end to ‘naive globalization’ at the European Forum for New Ideas in Warsaw in April 2025. He emphasized that state-owned strategic companies should not prioritize profit maximization, a comment that immediately spooked investors, triggering a sell-off of Polish stocks—particularly those in the WIG20 index, where state-controlled firms like Orlen and PKO Bank Polski still play a dominant role. The concern was that abandoning profit-oriented management could harm minority shareholders.
What Does “Repolonization” Actually Mean?
A few weeks later, following a cabinet meeting, the government announced it had begun working on “repolonization” measures, starting with changes to public procurement rules to favor domestic firms.
Minister of Funds and Regional Policy Katarzyna Pełczyńska-Nałęcz later clarified via social media that repolonization means “more Poland in the Polish economy”, with greater capital and support directed to local businesses—not necessarily only state-owned ones. She emphasized it should not mean renationalization and called for reversing the unnecessary expansion of the state’s role in non-strategic sectors.
Balcerowicz: “We Need Privatization, Not Political Slogans”
Balcerowicz argues that the best way to depoliticize the economy is to transfer state-controlled assets to private hands, while reinforcing competition.
“We don’t need to chase after vague slogans from politicians. We should demand clear answers,” said the former central banker. “There’s plenty of comparative research and real-world evidence showing what Poland must do to keep catching up with the West in terms of living standards. It boils down to finishing the privatization process and getting politics out of business.”
The State Still Dominates Key Sectors
According to Poland’s Central Statistical Office (GUS), as of Q4 2024, the country had nearly 2.8 million active businesses, mostly small and medium enterprises. However, the state continues to dominate in large enterprises, such as Orlen, KGHM Polska Miedź, major energy companies, and state-owned banks. At the end of 2024, the government held stakes in around 400 such companies.
A FOR survey found that public attitudes toward privatization vary depending on how the question is asked. When phrased generally, a pro-privatization sentiment prevailed—with 62% agreeing that politicians should only define the legal framework for economic activity. Over half also agreed that the economy works better when more firms are privately owned.
However, when asked whether major state firms like Orlen or KGHM should be privatized, only 34% supported the idea, while 43% opposed it.
Poland Trails Only Turkey in State Ownership
“Poland has the second highest level of state ownership in the economy after Turkey,” Balcerowicz noted. “This is especially evident in the banking sector, where post-2015 nationalizations under the PiS government brought nearly 50% of banking assets under state control.”
He criticized the current government for failing to propose reforms to reverse this situation since coming to power in 2023.
“If Donald Tusk wants to distinguish his government from PiS, he shouldn’t copy their economic playbook. People rejected PiS because its policies were economically damaging in the long run,” Balcerowicz argued. “We should focus on what sets us apart from Western economies. First, our budget deficit is much higher, and second, our level of state ownership is alarmingly high.”
Source: CEO.com.pl – Balcerowicz criticizes Tusk’s repolonization plan as vague and counterproductive
